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> Rent or buy shoplot to start a business?

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yklooi
post Jan 14 2020, 12:38 AM

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QUOTE(ririruru90 @ Jan 14 2020, 12:33 AM)
Hi all, would like to ask opinions on those who have experience in small/medium business

Which one is better if I want to start a business? Renting or buying a shoplot?
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do you have enough money to sustain your business operation for 12 months or longer?
if ok, then can "consider' buying.
does your business need high amount of costs to do renovation?
if yes, then can "consider" buying.
is your business sure got business in the current place of operation?
if yes, then can "consider" buying.
is the purchased shoplot easy to sell off when needed and make some money from the sales?
if yes, then can "consider" buying

hmm.gif what more ahH?
yklooi
post Jan 14 2020, 01:00 AM

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QUOTE(ririruru90 @ Jan 14 2020, 12:51 AM)
I planned to open a tuition centre. If by sustaining business operation, will I loose money if there are no students for the centre?
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QUOTE(ririruru90 @ Jan 14 2020, 12:53 AM)
I was going to start a tuition centre. If I own the property but there are no business, as in there's no student for the centre..will I loose any money from that?
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after you bought it, if no business, you need to close your business.
if you close the business, you need to sell off the shoplot

you will lose, the legal fees, the agent fees, the bank loan interest, the time taken to re sell the shoplot and the possible drop in the price of the shoplot
yklooi
post Jan 14 2020, 01:21 AM

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QUOTE(ririruru90 @ Jan 14 2020, 01:18 AM)
Is it compulsory to close the business?
not compulsory, if you have the mean to sustain a losing business
And Instead of selling it, is it possible to rent it out?
can you rent out that shoplot with ease?
is that your intented business to begin with?
can that rental provide you with positive cash flow when you still have bank loan to repay?

Sorry for asking many questions, I'm newbie in this
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yklooi
post Jan 14 2020, 02:59 AM

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QUOTE(ririruru90 @ Jan 14 2020, 01:59 AM)
well not intended to rent out.. I mean it's just another plan when the business doesn't go well so at least when renting out there's still some income to pay back the bank loan or maybe some part of it
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can that rental provide you with positive cash flow when you still have bank loan to repay?
how much can you rent out and how much do you need to repay the bank loan?

while you are doing that, how much do you need to recover from the "failed" business (that lead to the need to resell the shoplot)?
if you think you can do that without problem, then of course it is good to buy one. for it is an asset for your business after you have fully paid off the loan....then from there, if your business is in need of money in future, you can mortgage that shoplot.....
yklooi
post Jan 14 2020, 02:32 PM

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QUOTE(ririruru90 @ Jan 14 2020, 02:20 PM)
I'm not sure about that...what if I just pay it lump sum without using a bank loan?
Would that be a better option?
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Sure OK if you think you want to make money out of it n you are sure you can make profit from selling it
yklooi
post Jan 14 2020, 10:58 PM

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QUOTE(howszat @ Jan 14 2020, 10:26 PM)
NO. That is not the reason to consider buying.

Buying, or not buying, has to do with returns vs costs = profits.

Nothing to do with how many months.
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NO.....Buying, or not buying, is not always has to do with returns vs costs = profits.

there could be some investors that are NOT asking for profits....

that could be due to his available of money and his choices....

that is WHY it is about months of sustainability

your choices is PROFITs...his is not...read his postings...

This post has been edited by yklooi: Jan 14 2020, 11:09 PM

 

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